New Zealand September Services Sector Activity Highest Since February 2008

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New Zealand's services sector activity continued to expand for the third consecutive month in September, and rose to its highest levels in more than a year, a survey by the Business New Zealand and Bank of New Zealand showed Monday.

The Performance of Services Index or PSI climbed 1.9 points from August to 53.2, which is the highest reading since February 2008. Moreover, the index increased 6.3 points from last year. A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

In September, as in the previous month, two of the sub indices showed expansion. The activity/sales index climbed 7.5 points to 58, which is the highest result since November 2007. The new orders/business index rose 1.0 point to 58.6.

At the same time, the employment index dropped further to 48 from 49.3 in August, to remain in contraction for the 19th consecutive month. The stocks/inventories index also slipped further to 46.9 from 48. The deliveries index, although still in contraction, rose to 49.3 from 47.9, marking the highest reading since March this year.

In September, wholesale trade showed the most significant improvement in activity from August, followed by health and community services, and retail trade. However, accommodation, cafés and restaurants as also property and business services declined from August.

Across the four main regions, the Northern Region showed the best performance since November 2007. At the same time, the Central Region, the Canterbury/Westland region, and the Otago/ Southland region continued to expand, although at a slower pace.

(Market News Provided by RTTNews)